Employee theft is a common issue faced by retailers in Ireland, but how do they manage it and what are the consequences?
A Workplace Relations Commission (WRC) case recently brought the issue to the fore, after a Tesco employee was fired for taking bakery items 40 minutes before they became free to staff.
The employee argued his dismissal was disproportionate but Tesco had demonstrated a consistent policy of dismissing staff for dishonest conduct regardless of the value involved.
The WRC found Tesco had complied with fair procedures under the Unfair Dismissals Act.
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How common is employee theft?
It’s more common than you might think, according to Moira Grassick, chief operating officer at employment law and HR firm Peninsula Ireland.
“Theft is one of the most common conduct issues we see on our HR advice lines, so clearly it’s something that employers are navigating on a regular basis,” she says.
Michelle Halloran, independent HR consultant and workplace investigator, of Halloran HR Resolutions, says that employees have been dismissed in the past for taking a banana home without paying.
A banana? Is it really that big of a deal?
Such consequences might seem “very draconian” and “petty”, Halloran says, but big retailers can have thousands of employees.
“If you’ve got 10,000 employees and they’re all taking a banana home every day, you can see how that become a problem very quickly,” she says.
Most retailers often factor in such losses into their operating costs, Halloran says, though they aim primarily for a “zero-tolerance approach”.
What is a zero-tolerance approach?
A zero-tolerance approach against employee theft is a policy commonly adopted by retailers which outlines in writing what will not be tolerated, such as theft.
It is often preferred because it ensures rules are applied “fairly and consistently”, Grassick says.
“Once you start treating incidents on a case-by-case basis, the lines can quickly become blurred; how do you differentiate between a serious theft versus a minor case?
“Is there a specific item value that warrants dismissal over a disciplinary warning? And if each incident is judged separately, how do you prevent favouritism or bias from impacting the outcome?” she says.
Grassick says it is “vital” that employers have a clear policy in place that outlines exactly what will not be tolerated in the workplace, as well as clarifying the disciplinary consequences of that behaviour.
Some employers also include in these policies the right to search employee belongings on leaving work, Halloran says.
What are the consequences of an employee not adhering to a zero-tolerance policy?
It is often dismissal, Halloran says, adding that employers take any breach “very seriously” and often enforce the policy and disciplinary measures as a matter of principle.
If employees do not follow rules precisely, such as the Tesco employee who took bakery items 40 minutes before they became free to staff, they could lose their job.
For example, some employers allow workers to take a number of products each day for lunch, but might stipulate that they must be consumed on the premises.
“If they take them off the premises, that’s theft,” she says.
What about non-retail employers?
Very few companies outside of the retail sector have written policies on employee theft, Halloran says, which means they could have difficulty disciplining employees found taking toilet roll or office supplies.
Without such a policy, custom and practice or even an “unspoken perk of the job” can create problems, she says.
Anti-theft policies should set out clearly what the employer constitutes as theft, Halloran says, noting that people generally have “subjective attitudes when it comes to low-value items”.
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